Unlocking India’s Alcobev Future: Key Insights from Pernod Ricard at the Rising Bharat Summit

At the Rising Bharat Summit in New Delhi, Jean Touboul, CEO of Pernod Ricard India, shared insights on how the company is adapting its strategy in India. Recently, Pernod Ricard India has surpassed Diageo’s United Spirits Limited, becoming the largest alcoholic beverages company in the country by value.

India is now critical for Pernod Ricard. It’s the group’s biggest market by volume and the second-largest in terms of value, making up about 13% of global sales.

Touboul explained that their approach focuses on offering a range of products that cater to changing consumer preferences. They aim to guide customers from more accessible drinks to premium and luxury options. They have created local brands that appeal to various demographics, targeting young professionals and urban buyers looking for high-quality options.

Interestingly, the consumption patterns are shifting. Young generations are becoming more conscious about drinking. Touboul mentioned, “Gen Z consuming less is difficult to measure.” His company encourages drinking less but selecting better quality, which resonates with growing concerns about health and moderation.

India’s favorable demographics are a big part of their strategy. With around 20 to 25 million new legal drinking age consumers entering the market each year, Touboul sees great potential. He also highlighted economic growth, noting that as individuals have more disposable income, interest in premium spirits increases.

Pernod Ricard is not just focusing on big cities; they are also keen on expanding into Tier-2 and Tier-3 cities. Touboul stressed that they can’t rely solely on urban centers for growth. Instead, they see significant potential in smaller towns, where consumers may start with local brands before moving towards premium offerings.

Furthermore, Touboul discussed the importance of adapting to local tastes in a diverse market like India. He shared that while whisky is popular, other spirits like brandy also have strong followings in certain regions. Understanding these nuances is vital for success.

Touboul also supported free trade agreements with the UK and EU, seeing them as beneficial for trade opportunities in both directions. He emphasized that competition, including imports, drives better quality and innovation.

Pernod Ricard has ambitious plans for growth in India. The company aims to triple its revenue over the next decade by shifting its focus from low-margin products to higher-value categories. A key part of this strategy is investing in local manufacturing, including a new $200 million malt distillery in Nagpur. This facility is expected not only to boost production but also to strengthen export capabilities.

In terms of workforce, Touboul praised the talent pool in India, noting that they send skilled professionals abroad who later return with valuable experience. Reflecting on his own journey in understanding the Indian market, he expressed a desire to learn from his team rather than impose ideas.

Overall, Pernod Ricard’s strategy in India is a blend of local understanding, premiumization, and a focus on both emerging and established consumer bases. As they navigate this complex market, their adaptability and commitment to local preferences will be crucial.



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